Adam Smith wrote "Wealth of Nations", and believed that there should be no outside controls and no ethical considerations when dealing with socio-economic issues.

Who was Thomas Malthus and what did he believe?

Thomas Malthus was an English Clergyman who wrote "Essay on Population". He said "Agriculture proceeds arithmetically. Population proceeds geometrically."

What did David Ricardo believe?

David Ricardo believed in the "Iron Law of Wages", that wages have a natural market price. He refers to laborers as a separate race.

What is Social Darwinism? Who were some Social Darwinists?

Social Darwinism was applying Darwin's theories of survival of the fittest and evolution to social situations. The Social Darwinists believed that nature WANTED the poor and working to die.
Two prominent social Darwinists were Herbert Spencer and Graham Sumner.

What were some Economic and Cultural trends shaping US industrialization?

The civil war stimulated the industries and standardized time and sizes.
Spin offs of this include the protective tariff, R.R. promotion, and government manipulation of currency.

2 things, 3 spin-offs.

What were the changes in industry after the civil war?

The organization of industry changed from an Artisan+Family/Partnership organization to Corporations.
The relationships of worker to boss changed from paternal relationships to impersonal.
The market changed from Small/Local to International.
Production changed from Individual/Artisan to standardized mass production.

there are 4 areas.

What is value added?

Value added is the value of the product produced minus the cost of the raw materials to make it.

Why is value added so important?

Because value added is money that either goes to profit or to the laborers who created the product. The portion that the laborer recieves is the part disputed. Also, when value added goes up, it would seem that the wages of the worker would go up equally, but this isn't usually true.

Who were the "Robber Barons" or "Captains of Industry"? What was their business?

The initial sale of a corporation's stock can be used for anything the company wants. Also, a corporation is an individual before the law. So, a corporation can commit a crime and be punished but the individuals in the company are not penalized.

What are trusts? What are the kinds of trusts?

Trusts are monopolies (controlling the entire market for a product). The two types of trust are vertical and horizontal.

What is a horizontal trust?

a horizontal trust is controlling the entire production of a process by controlling one step of the production.
For example, Rockafeller controlled the oil refinery step of oil production, and thus he could control every other step of the market.

What is a vertical trust?

a vertical trust is controlling the entire process of a product, thus controlling the profit made off of it.
For example, Carnegie controlled the entire steel industry, so he could control the profit easily.

What is a holding company?

A holding company is a company created to avoid anti-trust legislation. It creates, basically, a pyramid of stock. The company owns more than 50% of other company's stock, so they basically control the companies. They're just a huge trust, but they're getting around the law.

How was the railroad system abused?

The railroad system was abused by:
pooling (R.R. leaders cooperating to control the prices)
short haul (charging more for a short trip (because of no competition)
rebates (giving a kickback in return for good business)
lobbying (giving money to/blackmailing someone for preferential treatment)

4 ways.

What were the differences in cities after the civil war? Why?

Before the civil war, cities were TRADE centers. After it, they became centers of industry/manufacturing.
They became centers of industry because 80% of all the immigrants stayed in the NE cities. This meant a larger concentration of consumers, which needed a bigger concentration of workers. And, keeping the workers, supplies, services, and consumers all in the same place lowered costs for the industries.

What were some reasons for immigration?

From South and East Europe, many people immigrated because of religious persecution (Catholics and Jews) or Political persecution. Also, they moved for economic opportunities.
From Asia, immigrants mainly came over to raise money to take back home to their countries. It was to control Asian immigration that the first immigration quotas came into place.

What were some reasons for emigration?

Modern conveniences were driving the crop prices down, and mechanization made the debt rise. So people emigrated from small towns to cities in order to get higher wages and live "the good life".
Many people were also driven out of their homes by foreclosures and such.

What were some advantages of urban living?

There was a alot of new technology, including electricity, telephones, mass transit (street railways), as well as fresh meat and veggies, and a safer water supply.

What is a ghetto?

Originally, a ghetto was the jewish quarter of a city. They became a place where immigrants would stay together, all speaking the same language. Ghettos often served to soften the cultural shock of moving to america.

Why did the 2nd generation of immigrants assimilate so much quicker than their parents?

because they went to public schools. There, they picked up the language.

What are the SLUMS?

Slums are a product of poverty and a lack of planning. There was no planned housing or codes in the slums. They were overcrowded beyond belief. A slum is basically where the poor people live.

Who were the Knights of Labor and what did they believe?

The Knights of Labor were a labor union for ALL laborers (even unskilled workers). They had many "unrealistic" political and social programs (for the day)- they wanted paper money, prohibition, an income tax, and a national banking system. They met their end at the Haymarket Square riot.

Who was the American Federation of Labor? What did they believe?

The American Federation of Labor replaced the Knights of Labor in the workers unions. They represented only skilled workers. They were very local, and they understood supply and demand very well. They were very careful about how they dealt with businesses (on wages, hours, and working conditions). They did NOT oppose capitolism. They were very much against radicalism.